Transcript Session 6
Master Production Scheduling (MPS) – Basic Techniques http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 6 • • • • • • MPS: Role in the MPC System MPS Defined MPS Approaches Single Level MPS Time-Phased Record Customer Order Processing Rolling through Time (Transactions) 1 Manufacturing Planning and Control System 2 MPS Defined • Anticipated Build Schedule – a statement of production not market demand • The MPS is: – Stated in terms of product specifications – Concerned with product mix while Sales and Operations Planning is concerned with volume • The MPS is the basis for: – Making customer delivery promises – Utilizing plant capacity effectively – Attaining the strategic objectives in the sales and operations plan – Resolving trade-offs between manufacturing and marketing 3 MPS Approaches • Make – to – Stock • Make – to – Order • Assemble – to – Order 4 Single Level MPS Record Example • The Zero Manufacturing Company ships Product A from the firm's plant warehouse to satisfy East Coast demand. Currently, the sales forecast for Product A at the Murphysboro plant is 30 units per period. • Product A is considered a make-to-stock item. – Plant warehouse on hand inventory = 50 units – Safety Stock = 10 units – Lot Size = L4L – Open Order for 30 units due in period 1 • The master production scheduler has heard that an MRP record which uses the forecast for gross requirements and has a lead time of zero can be used for master production scheduling. Complete the following MRP record. How can this be used for master production scheduling? Product A Gross requirements Scheduled receipts Projected available balance Planned order release Q = lot for lot; LT = 0; SS = 10 1 2 Period 3 4 5 6 5 Single Level MPS Record Processing Product A Gross requirements Scheduled receipts Projected available balance 50 Planned order release Q = lot for lot; LT = 0; SS = 10 1 30 30 50 2 30 20 Period 3 4 30 30 5 30 6 30 10 20 10 30 10 30 10 30 One way viewing an MPS is as the set of planned order releases and scheduled receipts in a record such as above. The problem is that any errors in forecast will be reflected in the on-hand balance. All changes will come in the planned orders. Use of firm planned orders will reduce this instability. 6 Customer Order Promising Example The MPS planner at Murphy Motors uses MPS time-phased records for planning end item production. The planner is currently working on a schedule for the P24. The production lot size is 70 and the safety stock is 5. Item: P24 Forecast Orders Available Available to promise MPS (completion) On hand = 20, MPS Lot Size = 70 Period 1 2 3 4 5 6 7 8 30 30 30 40 40 40 45 45 13 8 4 7 Customer Order Promising Example a. Complete the MPS time-phased record for P24. b. Can Murphy accept the following orders? Update the MPS time-phased record for accepted orders. Order Amount Desired Period 1 40 4 2 30 6 3 30 2 4 25 3 8 Customer Order Processing Procedure a. b. Period Item: P24 1 2 3 4 5 6 Forecast 30 30 30 40 40 40 Orders 13 8 4 Available 60 30 70 30 60 20 Available to promise 69 66 70 MPS (Completion) 70 70 70 On hand = 20, MPS lot size = 70 Order Amount Desired Period 1 40 4 2 30 6 3 30 2 4 25 3 7 8 45 45 45 70 70 70 70 70 9 Customer Order Processing Procedure Order Amount Desired Period Accept (Y or N) 1 40 4 Y 2 30 6 Y b. 3 30 2 Y 4 25 3 Y Item: P24 1 2 3 Forecast 30 30 30 Orders 13 38 29 Available 60 22 62 Available to promise 39 1 MPS (Completion) 70 70 On hand = 20, MPS lot size = 70 • Period 4 5 40 40 40 22 52 40 70 6 40 30 12 7 45 8 45 37 70 70 62 70 70 The convention of the greater of forecast or orders is used in determining the projected available balance. 10 Rolling Through Time – Transactions Example The following MPS time phased record has been prepared at the start of period 1. Period Item: Smell fresh 1 2 3 4 5 6 Forecast 20 20 20 30 30 30 Orders 5 3 2 Available 50 30 10 30 50 20 Available to promise 60 50 50 MPS (Completion) 50 50 50 On hand = 20, MPS lot size = 50 7 8 30 30 40 10 50 50 11 Rolling Through Time – Transactions Example The following events occurred during period 1: • • • • • • Actual demand during period 1 was 25 units. Marketing forecasted that 40 units would be needed for period 9. An order for 10 in period 2 was accepted. An order for 20 in period 4 was accepted. An order for 6 in period 3 was accepted. The MPS in period 1 was produced as planned. 12 Rolling through Time -Transactions/ Processing b. Update the record below after rolling through time. Smell fresh Period Forecast Orders Available Available to promise MPS (Completion) On Hand = 45, MPS 2 3 20 20 13 8 25 5 24 4 5 6 30 30 30 20 25 45 15 30 50 50 50 lot size = 50 Beginning On Hand Period 1 = 20 Period 1 Actual Demand = -25 MPS Receipt Into Stock =+50 Beginning on Hand Period 2 = 45 7 8 9 30 30 40 35 50 50 5 15 50 50 13